Investment Wisdom Podcast – Day 7 of 12

How to think about your Alternative Sleeve in the Context of Getting the Most Bang for your Buck

Adam Butler, CFA, CAIA
Adam Butler is Chief Investment Officer of ReSolve Asset Management, sub-advisor to an alternative allocation strategy at Rational Funds. He manages ETF and futures based strategies including a global risk parity ETF, two Adaptive Asset Allocation funds, and a multi-strategy hedge fund. Adam is also author of the book Adaptive Asset Allocation: Dynamic Global Portfolios to Profit in Good Times and is ranked in the top 1% of authors by paper downloads on SSRN. He has authored over a dozen papers and dozens of articles on asset allocation; factor investing; quantitative methods; and portfolio optimization. Adam holds both CFA and CAIA charters and appears on BNN Bloomberg and CNBC.

And on the 7th day, the Meta Portfolio was created. After analyzing the many sources of return across major global asset classes, we now focus on how to implement different strategies and the most thoughtful way of putting those pieces together.

When advisors and investors consider adding liquid alternative strategies to their usual combination of stocks and bonds, it usually represents between 10% and 20% of their overall allocation. But if we really want this sleeve to provide meaningful, differentiated performance to our portfolio, we need to think about capital efficiency.

Podcast series re-posted with permission from Resolve Asset Management.  Click here to see the original post.